LEAN CONSTRUCTION: KNOWLEDGE AND BARRIERS IN IMPLEMENTING INTO MALAYSIA CONSTRUCTION INDUSTRY VICTOR LIM AIK JIN A project report submitted in partial fulfillment of the requirements for the award of the degree of Master of Science (Construction Management) Faculty of Civil Engineering Universiti Teknologi Malaysia NOVEMBER 2008
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LEAN CONSTRUCTION: KNOWLEDGE AND BARRIERS IN
IMPLEMENTING INTO MALAYSIA CONSTRUCTION INDUSTRY
VICTOR LIM AIK JIN
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Science (Construction Management)
Faculty of Civil Engineering
Universiti Teknologi Malaysia
NOVEMBER 2008
v
ABSTRACT
Construction industry is a very fragmented industry and reluctant to accept
changes to its current practice because of the belief that construction industry is
completely different in nature resulting in producing high wastage and low
productivity. Hence, improvement methods or philosophy had been developed out to
overcome the above mention problem such as lean construction. Lean Construction
is a philosophy based on the concepts of lean production which is termed on 1990
by Womack. Thus, this research was carried out to identify the level of knowledge
of local practitioners’ and compare the potential barriers in implementation of lean
construction in Industrialised Building System (IBS) and Conventional type of
construction. With the help of Statistical Package for Social Sciences Software
(SPSS 15.0) and Microsoft Excel, data collected from questionnaire surveys were
analysed. In general, local practitioners’ knowledge on lean construction was high,
the only problem was most of them (respondents) do not understand the technical
term of lean construction yet, applying its principles in their work site. Three
potential barriers identified which most of the respondent agreed that it occurred
very frequently on site which is (1) Ineffective management practices (Traditional),
(2) Just-in-time (JIT) delivery of materials on site (IBS) and (3) "Cut and Paste"
from previous project (Traditional and IBS). Statistical test using Wilcoxon Signed-
Rank Test shows significant difference between the potential barriers in Traditional
and IBS type of construction.
vi
ABSTRAK
Industri pembinaan merupakan satu industri yang sangat fragmen dan
keberatan untuk menerima perubahan-perubahan kerana mempercayai industri
pembinaan adalah keseluruhan berbeza, di mana penghasilan pembaziran adalah
ditahap yang tinggi dengan produktiviti yang rendah. Oleh itu, kaedah-kaedah atau
falsafah peningkatan telah dikajikan untuk mengatasi masalah-masalah tersebut
seperti lean construction. Lean Construction adalah satu falsafah yang berdasarkan
konsep lean production yang dinamakan pada 1990 oleh Womack. Justeru,
penyelidikan ini dilaksanakan untuk mengenalpasti tahap pengetahuan pengamal-
pengamal tempatan dan potensi halangan dalam perlaksanaan lean construction di
dalam pembinaan jenis ‘Industrialised Building System’ (IBS) dan tradisional.
Dengan bantuan perisian Statistical Package for Social Sciences Software (SPSS
15.0) dan Microsoft Excel, data yang telah dikumpul daripada kajian soal selidik
dianalisis. Secara umumnya, pengetahuan pengamal-pengamal tempatan terhadap
lean construction adalah di tahap yang tinggi. Walaubagaimanapun, masalah
umumnya adalah kebanyakan daripada mereka (responden) tidak memahami istilah
teknikal tetapi masih menggunakan prinsip-prinsip lean construction dalam tempat
kerja mereka. Tiga potensi halangan yang sering sangat berlaku telah dikenalpasti
oleh kebanyakan responden di tapak pembinanan iaitu (1) Ineffective management
practice (Traditional), (2) Just-in-time (JIT) delivery of materials on site (IBS) dan
(3) "Cut and Paste" from previous project (Traditional and IBS). Ujian statistik
menggunakan Wilcoxon Signed Rank Test menunjukkan perbezaan signifikan antara
halangan-halangan yang berpotensi diantara jenis pembinaan Traditional dan IBS.
vii
TABLE OF CONTENTS
CHAPTER TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENTS iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENTS vii
LIST OF TABLES xii
LIST OF FIGURES xiv
LIST OF CHARTS xv
LIST OF APPENDICES xvi
1 INTRODUCTION
1.0 Introduction 1
1.1 Problem Statements 2
1.2 Aim 4
1.3 Objectives 4
1.4 Scope of Research 5
1.5 Brief Methodology 5
1.6 Report Outline 7
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2 LITERATURE REVIEW
2.1 Introduction 8
2.2 History of Lean Production / Manufacturing 9
2.2.1 Just-In-Time (JIT) 13
2.3 Definition 13
2.4 Concept of Lean Production 15
2.4.1 The Seven Forms of Muda 17
2.4.1.1 Defects 18
2.4.1.2 Overproduction 18
2.4.1.3 Conveyance 18
2.4.1.4 Waiting 19
2.4.1.5 Inventory 19
2.4.1.6 Motion 19
2.4.1.7 Overprocessing 19
2.4.2 Lean Production Principles 21
2.4.2.1 Reduce the Share of Non-Adding Value
Activities 21
2.4.2.2 Increase Output Through Systematic
Consideration of Customer Requirement 22
2.4.2.3 Reduce Variability 22
2.4.2.4 Reduce the Cycle Time 23
2.4.2.5 Simplify by Minimizing the Number of
Steps, Parts and Linkages 25
2.4.2.6 Increase Output Flexibility 26
2.4.2.7 Increase Process Transparency 26
2.4.2.8 Focus Control on the Complete Process 27
2.4.2.9 Build Continuous Improvement into the
Process 28
2.4.2.10 Balance Flow Improvement with
Conversion Improvement 29
2.4.2.11 Benchmark 30
2.5 Concept of Lean Construction 31
2.6 Principles of Lean Construction 32
ix
2.6.1 Specify Value 32
2.6.2 Identify and Map the Value Stream 33
2.6.3 Flows 34
2.6.4 Pull 36
2.6.5 Perfection / Continuous Improvement 36
2.6.6 Transparency 37
2.6.7 Process Variability 38
2.7 Case Studies of Implementation of Lean Construction
in United Kingdom 38
2.7.1 Case 1 - Mordernisation of Community Housing,
The Wyre Forest District 40
2.7.1.1 How the CLIP Process Work 40
2.7.1.2 Benefits from CLIP’s Initiative 42
2.7.2 Case 2 - Street Lighting Maintenance Contract